Lockheed Martin reported fourth-quarter earnings of $5.80 per share, falling short of the consensus estimate of $6.24. Quarterly net earnings were $1.34 billion, compared with $527 million a year ago, reflecting a pension settlement charge of $479 million and classified program losses recognized in 2024. Sales in the period rose to $20.3 billion from $18.6 billion, while cash from operations improved to $3.2 billion versus $1.0 billion, driven by working-capital timing and lower tax payments under recent legislation.

For the full year, Lockheed Martin achieved 6 percent sales growth to $75.0 billion and net earnings of $5.02 billion, or $21.49 per share, compared with $5.34 billion a year earlier. Free cash flow reached $6.9 billion after an $860 million pension contribution, up from $5.3 billion in 2024. The company invested $3.5 billion in production capacity and next-generation technologies, maintained a record $194 billion backlog at year-end and returned $3.1 billion to shareholders through dividends and $3.0 billion in share repurchases.

In response to Pentagon demand, Lockheed Martin will ramp THAAD interceptor output from 96 to approximately 400 per year under a new seven-year framework agreement. The program expansion includes a multibillion-dollar investment to modernize more than 20 facilities across five states, creation of tens of thousands of manufacturing and engineering jobs, and construction of a Munitions Acceleration Center in Arkansas to deploy advanced robotics and digital manufacturing techniques.

Management forecasts 2026 sales growth of about 5 percent and segment operating profit growth of 25 percent, with free cash flow projected between $6.5 billion and $6.8 billion. Backed by combat-proven performance of F-35, F-22 and other systems during recent operations, the company sees sustained demand for its core portfolios. Ongoing partnerships with the Department of War on framework agreements for THAAD and PAC-3 missiles underpin Lockheed Martin’s strategy to enhance innovation, accountability and execution within the defense industrial base.